Students of comparative management studies should review the recent article in The Economist that argues convincingly that the recent trouble suffered by Toyota illustrates fundamental flaws in notions of corporate governance in Japan. Would the presence of independent directors on the Toyota board have made any difference? Is there something that Japanese companies can learn from governance trends and practices in other countries and, if so, how can changes be effectively implemented? This is just one of the many interesting questions in the area of comparative management studies.
This post introduces the latest addition to our Working Paper Series which summarizes the main approaches that have served as the foundation for comparative and cross-cultural management studies. Most of these approaches can be categorized as primarily macro models that attempt to explain the overall management systems used by firms; however, several of the approaches are useful in examing micro-level elements such as the behavior of individuals working inside those firms.
Amendments to the proxy rules recently adopted by the Securities and Exchange Commission are now in effect. These amendments, which are briefly described in this week's report, expand the amount and detail of information relating to compensation and corporate governance that must be included in proxy statements, annual reports and registration statements.